Fred and his wife file a joint return in 2015.Their gross income before adjustments is $150,000 and they have no children or other dependents.They have the following deductions:

Alimony paid to Fred's ex-wife$5,000

Real property taxes$12,000

State income taxes $6,000

Qualified residence interest $10,000

Unreimbursed moving expenses$3,000

Work related seminar $2,000

Tax return preparation fee:$1,500

Interest on loan to purchase a car for personal use.$500

(a)What is their AGI and taxable income?

(b)How would your answer change if their gross income before adjustments was $400,000.

c)Discuss the change to the Pease Limitation from the TCJA.